How Bitcoin Works
Bitcoin runs on a technology called blockchain, which is a public ledger that records every transaction ever made. Think of it as a spreadsheet that everyone can read but nobody can edit dishonestly. New transactions are verified by thousands of computers around the world (called miners), making fraud virtually impossible.
Why Bitcoin Has Value
Bitcoin's value comes from the same place as gold's: scarcity, durability, and consensus. There will only ever be 21 million Bitcoin. Unlike gold, you can send Bitcoin anywhere in the world in minutes, divide it into tiny fractions, and verify its authenticity instantly. Unlike the dollar, no government can print more Bitcoin.
Who Uses Bitcoin?
Bitcoin is used by individuals saving for the future, companies like Strategy (840,000+ BTC) and Tesla (11,500 BTC) holding it on their balance sheets, and over 2,000 institutional investors through regulated ETFs. In 2024, the U.S. approved spot Bitcoin ETFs managed by BlackRock and Fidelity, bringing Bitcoin to mainstream finance.